Corgnet, Brice; Rodriguez-Lara, Ismael - In: Journal of Economic Behavior & Organization 92 (2013) C, pp. 259-272
We develop a principal–agent model with a moral hazard problem in which the principal has access to a hard signal (the level of output) and a soft behavioral signal (the supervision signal) about the agent's level of effort. In our model, the agent can initiate influence activities and...